Every time we come to a new year, we always have our resolution. We have hopes, targets, programs until action plans. We try to project potencies for our business along the coming year while, at the same time, we will set up strategies for anticipative solutions to the potential challenges and problems.
Coming to the new year of 2022, our logistics and transportation industry sector will be sphered with potencies and challenges, as we sum up in our January cover story. In general, business players as sources of the story present their optimism, which will be based on the economic growth projection.
The national economic growth in 2022 is expected to grow from 4.7-5.5%, while the global economy to grow by about 4%. This projection will be a perfect reference for shipping and logistics players in setting up targets. They are so optimistic the momentum of 2021 will continue this year. Last year shipping grew up so fantastic. Last year (2021) was the best in the history of this industry and industry marked by the record in revenue and net profit.
Referring to last year’s performance and economic growth projection this year, it is reasonable if all shipping and logistics players welcome the new year with joy. The shipping market is expected to grow this year, giving high revenue and profit to players. Logistics are also expected to grow up.
However, though potencies will give the shipping and logistics a very good prospect, challenges and business risk will also be there, both coming from the industry itself and some external factors. The biggest issue facing policymakers around the world is likely to be inflation.
The imbalance between supply and demand will continue this year as demand for commodities, including from the US market, will still be high, while on the other hand, the supply will grow moderately. Shipping lines will also still face higher expenses for operating, bunker, and charter rate problems.
Hence, in this cover story, we also sum up some critical solutions as our resolution for the business of 2022, which is expected to be more challenging. Business digitalization, cost efficiency, and appropriate investment are the keywords, the resolution agenda for the key year.
The adoption of digitalization in this industry will make shipping companies more competitive. Setting up appropriate cost management as operating cost, bunker cost, and the charter rate is still high is needed for cost efficiency. While at the same time, investment should be made properly as any prices will be higher this year.
Read ISG Cover Story January 2022: https://theshippinggazette.com/shipping-and-logistics-overview-2022-optimizing-market-potencies/
